Exercise #5

For this week exercise, we need to try a few logit models (see this link for more information: https://stats.idre.ucla.edu/r/dae/logit-regression/)

Model 1

Run a logit model and use being a member of network and find out its impact on hospital ownership and hospital beds? (Model 1)

Hospital Characteristics	Coef.	St. Err	p-value
Hospital beds	0.0022652	0.0001627	<2e-16 ***
Ownership
For Profit	0.0652295	0.184787	0.0276
Non-for profit	N/A
Other	-0.2160480	0.0980987	0.0276
N	4063.4
AIC	3706.9

Model 2

Now, include hospital income and report the Coeff.? (Model 2)

Hospital Characteristics	Coef.	St. Err	p-value
Hospital beds	2.661E-03	2.301E-04	<2e-16***
Ownership
For Profit	-2.281E-01	1.085E-01	0.03560
Non-for profit	NA
Other	-2.193E-01	9.808E-02	0.02535
Hospital Income	2.661E-03	2.301E-04	<2e-16***
N	4063.4
AIC	3700.9

Model 3

Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in your model? And keep all variables you used for models 1, 2 & 3 and discuss your findings? Do you recommend keeping membership for a hospital? Why or why not? (Model 3)

Hospital Characteristics	Coef.	St. Err	p-value
Hospital beds	2.589E-03	2.318E-04	<2e-16 ***
Ownership
For Profit	-2.237E-01	1.097E-01	0.041472
Non-for profit	N/A
Other	-2.712E-01	1.013E-01	0.007428**
Hospital Income	-5.476E-10	1.945E-10	0.004866 **
Medicare discharge ratio	-4.115E-03	3.025E-03	0.173754
Medicaid discharge ratio	-1.623E-02	4.499E-03	0.000309
N	3983.5
AIC	3622.4

Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in your model? And keep all variables you used form models 1, 2 & 3 and discuss your findings? Do you recommend keeping membership for a hospital? Why or why not? (Model 3)

Based on your finding please recommend 3 policies to improve hospital performance in FP, NFP hospitals, please make sure to use the final model for your recommendation.